Bulk report – Week 42
Week-on-week the average of the weighted 5TC average declined $790, finishing the week at $17,175. The Brazil to Qingdao trade slipped two dollars throughout the week, whilst the West Australia to Qingdao trade remained static in the low/mid $9s. From the North Atlantic, both the transatlantic and fronthaul runs lifted midweek but showed signs of softening by the end, pricing at $24,194 and $36,875 per day respectively. But overall the sector had a relatively stable week amid ups and downs with tightness being seeing in some regions.
The Panamax market returned a mixed week. Rates in the Atlantic were largely seen under pressure throughout the trading week. Solid demand from NoPac kept rates in Asia well supported throughout, although the market did taper off as the weekend approached. A distinct lack of mineral demand from the North were largely the contributing factors to the easing in rates in the North Atlantic. $19,000 concluded early in the week but was viewed closer to $18,000 by the weekend. US Gulf grains appeared to be back in focus again with numerous accounts of November arrivals being concluded, delays at Neo-Panama Canal were again impacting rates. Asia again proved to be dominated by solid levels of activity from the NoPac with $23,000 the high being agreed for a nicely described 82,000-dwt delivery Japan on a NoPac round trip. Limited period activity but a smart design delivery China achieved $19,000 basis 5/7 months.
A split week for the sector as Asia lacked impetus with limited fresh enquiry and a build up of prompt tonnage. However, overall, the sentiment remained positive in the Atlantic. Period activity was limited but a 61,000-dwt open Poland was fixed for one year in the mid $17,000s and a 63,000-dwt giving delivery Singapore fixed a similar period at $17,000. From the US Gulf, activity remained with ultramax sizes seeing close to $30,000 for trips to China. Further south, steady activity from east Coast South America with 58,000-dwt fixing in the low to mid $17,000s plus around $725,000 ballast bonus for trips to the Indian Ocean – Arabian Gulf regions. Limited coal movement from Indonesia saw sentiment waning over the week. A 53,000-dwt fixing delivery passing Singapore trip via Indonesia redelivery Vietnam in the mid $14,000s. Further north, a 58,000-dwt open CJK fixed a trip to the US Gulf at around $13,000.
With continued negativity in Asia, rates took a large step down this week. A 40,000-dwt was rumoured to have been fixed for a trip from Japan to Southeast Asia at $13,500 and a 37,000-dwt open in China was fixed for a trip via Indonesia back to China at $12,000. A 31,000-dwt was fixed from Singapore via Australia to Southeast Asia at $11,000 with an intended cargo of salt. There has been more activity in the US Gulf, and a 39,000-dwt was rumoured to have been fixed for a trip from Houston to Tunisia with an intended cargo of grains in the low $17,000s. A 36,000-dwt was rumoured to have been fixed for a trip from Savannah to the UK-Continent with an intended cargo of wood pellets in the mid-teens but further details had yet to emerge. A 28,000-dwt was fixed from Santos to Algeria with an intended cargo of sugar at $26,000.